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Finance & Business · pattern A, Numeric fields

Loss, percentage loss, and the runway it leaves.

Enter revenue and total costs for the loss, its size relative to revenue, and how long a given cash balance survives at that rate.

Inputs

The formula used

loss = cost − revenue; runway = cash ÷ monthly loss

A loss on a period is not the same as running out of money. Runway measures the second, which is the question that decides whether a business continues.

Loss

30,000.00

Loss as a share of revenue
33.33 %
Loss per month
2,500.00
Runway at this burn rate
18.00 months
Revenue needed to break even
120,000.00
Revenue increase required
33.33 %
Cost reduction required
25.00 %

Runway is the number that forces decisions.

A loss-making business fails when it runs out of cash, not when it reports a loss, and the two are separated by however much cash is in the bank. Runway converts a loss into a deadline, which is why investors ask for it first. Note also that the revenue increase and cost reduction needed to break even are different percentages — the denominators differ.

Questions about loss

What is burn rate?
Net cash outflow per month. Gross burn is total spending; net burn subtracts revenue, and net is what determines runway.
Can a profitable business run out of cash?
Yes, routinely — through working capital tied up in receivables and stock. Profit and cash are different measurements on different timing.
Are losses always bad?
Not necessarily. Deliberate investment ahead of revenue is a strategy, provided the runway is funded and the path to profitability is credible.

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If the number is not the part you are stuck on, that is what the service is for — a specialist who explains the working, not just the answer.

These are coursework tools. Nothing here is financial advice, no figure accounts for tax rules in your jurisdiction, and no result should be relied on for a real borrowing or investment decision.